Acquisitions

Our company is continually growing and evolving.

Our overall goal is to be the most efficient, high value, low cost provider of document and image processing services and technology in the United States. Our long term growth goal is to have a presence in each of the top 250 markets in the country.

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Business Valuation

Our Strategy

We are constantly examining new acquisition opportunities.

We have a full-time corporate staff devoted to acquisitions. This team is responsible for identifying and examining potential acquisition candidates, performing detailed analysis, valuation, due diligence, and all actions necessary to consummate an acquisition. If you are considering selling your company, we will be happy to work with you each step of the way. We can explain, in detail, the acquisition process, how values are derived, and what to expect before, during, and after the process.

Call Michael Pietrunti, our Senior Vice President, Acquisitions, Service & Marketing at 888-628-7834, ext. 20281, or if you would like to be contacted regarding the possibility of joining GIS, please click here.

All communications are handled with the highest levels of confidentiality.

GIS considers many factors to determine the overall value of a business.

We also recognize that every situation is unique; however, the basic formula is: (Adjusted Operating Profit x Multiplier) – Debt + Excess Cash.

Operating Profit refers to your company’s most recent twelve months of Earnings Before Interest and Taxes. This is also referred to as EBIT. If you have recently completed a fiscal year, we use that period. If you are in the middle of your fiscal year, we calculate the most recent 12 months.

Adjusted refers to items in your income statement that would change upon acquisition. These “addbacks” to operating profit might include excess owner compensation, personal expenses, and non-recurring (extraordinary) events.

The Multiplier is determined based on your company’s performance, size, and growth, as well as the fit with GIS’ strategic needs.

Our offer is contingent on the company being free of debt. This includes bank loans, vehicle loans, shareholder notes, inventory financing in excess of 90 days, and deferred maintenance income in excess of one year. It does not include trade payables, payroll liabilities, or deferred maintenance income of one year or less. If the company does have debt, proceeds at the closing will first go to pay off the debt, and the remaining amount will go to shareholders.

Additionally, if your company has cash on hand in excess of a normal operating amount as of the closing date, GIS can add that to the seller’s proceeds.

In addition to this basic formula, we consider the management team, geographic area, service reputation, facilities, and many other items to determine the overall value. If you have any questions, please contact Michael Pietrunti, our Senior Vice President, Acquisitions, Service & Marketing , at 888-628-7834, ext. 20281 or email us.

We typically enter new geographic markets by acquiring “core” companies.

We then expand those core companies’ markets through the acquisition of satellite companies, which are typically in close geographic proximity to core companies. Our core companies continue to operate under their pre-acquisition names, and with their pre-acquisition management teams, thus preserving existing customer relationships. Satellite companies are integrated into our core companies by transferring some of the administrative functions from the satellite to the core.

Core Company Acquisitions.
If your business is in a market where we already have a presence, or your business has some unique characteristics, call us to discuss. There is no cookie-cutter approach. We look for core company acquisition candidates that (1) are led by an experienced management team who are committed to manage the company after we acquire it, (2) have a strong regional market presence, and reputation for service, and (3) can grow internally and through the acquisition of satellite companies.

Satellite Company Acquisitions.
A key component of our growth strategy is to acquire satellite companies in, or near, our core companies’ markets. Core company management frequently identifies appropriate satellite acquisition candidates. In evaluating potential satellite acquisitions, we consider, among other factors, the potential satellite’s proximity to a core company and the service base under contract.

Integration.
We have extensive experience in successfully integrating acquired businesses, and typically complete our integrations within 120 days of acquisition. Our decentralized management structure minimizes many of the issues that typically arise in conjunction with the integration of acquired companies.

We provide efficiencies to our operating companies in the form of benefit programs, training, and insurance. We have specialists on our corporate staff who are available to provide support and assistance in a variety of disciplines, including human resources, benefits, insurance, service and sales productivity, accounting, and information systems support. We also provide resources, such as our benchmarking model, which assist our local management teams in monitoring and improving the operations and financial performance of their respective companies.

Our goal with each acquisition is to make the process as efficient as possible, and minimize the disruption. That way, the team at the operating company can continue to concentrate their efforts on providing outstanding service to their customers.

If you are interested in joining GIS, or have any questions about our acquisition strategy, call Michael Pietrunti, our Senior Vice President, Acquisitions, Service & Marketing at 888-628-7834 ext. 20281 or email us.

QUESTIONS?

Acquisition Process, Valuation, and Sale

How long will the process take?

The initial exploration can take several weeks, depending on availability. Once we have an agreement of intent, we usually complete due diligence and close within 60 days.

How much is my business worth?

It depends on many factors, with the primary one being profitability. Click on the tab above “Business Evaluation” to learn more about how we value businesses.

How will I be paid and when?

We primarily pay with cash transferred at closing. Generally, approximately ninety percent is distributed directly to the seller(s), with the balance distributed to an escrow account for one year.

I want to sell closer to retirement. How does that work?

We are generally looking for entrepreneurs who want to remain in a leadership role after acquisition. For core companies, we prefer a 3 – 5 year transition period. For satellite acquisitions, it can be less depending on the circumstances. Retirement at acquisition may or may not work for Global.

What is the process to sell my business?

When do I tell my company I’m involved in these discussions?

Once you have a signed Letter of Intent with us, we recommend that you inform your employees, so that they can interact with our due diligence team in an efficient manner. We can help you plan this announcement.

Who, from my company, needs to be involved?

Initially, just the owner(s). Additionally, you may need to ask your controller, CFO or external CPA for help during the initial investigation.

Do my employees lose their tenure with the company?

Operations

Is GIS going to micro-manage my company after the sale?

No. Local management teams decide how to best run their companies inside of the constraints of a business plan and GIS’ culture of ethics.

We own our building. Will you buy it or rent it?

GIS does not purchase any buildings. If appropriate, we will lease the facility at market rates, for a reasonable term.

Structure and Compensation

How much will I be paid? And how can I earn more?

That depends on your role, and company size, relative to other executives, and their company sizes, at GIS. We have a very level playing field. Your, and your company’s, performance will also impact your total compensation.

What is a Core company? Satellite? Which one am I?

These are terms that describe a company’s role in GIS’ organization. Click on the “Our Strategy” tab above to read more about our strategy.

Who determines how much my employees get paid?

Each company’s management determines the appropriate compensation for their employees, with the benefit of guidance from GIS.